Sector News

AstraZeneca snaps up ZS Pharma for $2.7 billion

November 6, 2015
Life sciences

AstraZeneca has unveiled plans to buy California-based ZS Pharma for $2.7 billion in a move that adds ballast to its cardiovascular and metabolic disease offering.

The transaction gives the drug giant access to the potassium-binding compound ZS-9, a potential best-in-class treatment for hyperkalaemia – a condition characterised by elevated levels of potassium in the blood linked with increased mortality in chronic kidney disease and coronary heart failure.

The drug is currently being reviewed by the US Food and Drug Administration, with an outcome expected by May 26 next year, while a submission in Europe is planned by the end of 2015. Current estimates for global peak year sales of ZS-9 exceed $1 billion, AZ said.

Under the terms of the deal, which have been unanimously approved by ZS Phama’s board of directors, AZ will acquire all of its outstanding capital stock for $90 per share in an all-cash transaction, which equates to some $2.7 billion. ZS Pharma, which has around 200 employees across three sites in California, Texas and Colorado, will then become a wholly owned subsidiary of AZ.

The transaction, which is expected to close by the end of the year, will not impact AZ’ financial guidance for 2015. The firm expects that the move will generate product sales from 2016, with minimal earnings dilution over 2016 and 2017, becoming accretive to core earnings from 2018.

Source: Pharma Times

comments closed

Related News

May 21, 2022

As monkeypox cases emerge in US and Europe, Bavarian Nordic inks vaccine order

Life sciences

A monkeypox outbreak is emerging in the U.S. and Europe, and at least one country is amping up countermeasure preparedness. Bavarian Nordic has secured a contract with an unnamed European country to supply its smallpox vaccine, called Imvanex in Europe, in response to the emergence of monkeypox cases, the Danish company said Thursday.

May 21, 2022

Moderna chairman Afeyan defends hiring practices after CFO debacle: report

Life sciences

Moderna’s recent chief financial officer debacle—in which Jorge Gomez departed on his second day on the job—raised questions about the company’s hiring process given its rush to global biopharma prominence. The most obvious one: How was it possible for Gomez to be hired when he was under investigation by his previous employer, Dentsply Sirona of Charlotte, N.C.

May 21, 2022

Merck to pay up to $1.4B in cancer deal with Kelun, but details are scarce

Life sciences

Merck & Co. is plucking a cancer project from the branch of Chinese-based Kelun Pharmaceutical for up to $1.4 billion, but details from the New Jersey-based Big Pharma have been hard to come by. The deal, first disclosed Monday on the Shenzhen stock exchange, has Merck handing over $47 million in upfront cash in exchange for ex-China rights to a “macromolecular tumor project.”